An Apology From Toyota’s Leader

Thursday

Feb 25, 2010 at 5:09 AMFeb 25, 2010 at 7:32 AM

Akio Toyoda assured lawmakers that Toyota was moving to fix problems that led to a recall and to regain the trust of consumers.

MICHELINE MAYNARD

WASHINGTON — Akio Toyoda, the president of Toyota, was billed as the main attraction at a House hearing Wednesday into the company’s recalls of millions of cars — recalls for which he profusely apologized and took personal responsibility.

But the transportation secretary, Raymond LaHood, offered more surprises in testimony that was sometimes heated, including many occasions when he was unable or declined to answer detailed questions about his department’s dealings with the auto company.

Both men spent hours before the House Committee on Oversight and Government Reform, one of three Congressional panels investigating the recall of more than six million vehicles and the delay in responding to problems of sudden acceleration.

Mr. Toyoda, with a translator to his right and the company’s chief operating officer for North America, Yoshimi Inaba, on his left, spoke in a calm, detached manner.

He was criticized by a representative on the committee for failing to show adequate remorse for those who had been killed in accidents involving acceleration problems.

Mr. LaHood, however, seemed defensive throughout the hearing. He initially was supposed to be joined by David Strickland, the newly confirmed head of the National Highway Traffic Safety Administration. Although Mr. Strickland and other officials of his agency were at the hearing, Mr. LaHood insisted on appearing alone, saying he bore full responsibility for his department’s actions.

As questioning of Mr. LaHood continued into its third hour, he grew testy when asked by Representative Jason Chaffetz, a Republican of Utah, whether Toyota was being treated in the same way as General Motors, which received a government bailout, and other carmakers.

“Absolutely,” Mr. LaHood said. Asked whether the safety agency had become too close to the industry, Mr. LaHood replied in an exasperated tone, “There is not a cozy relationship. In the past three years, we’ve recalled 23 million cars.”

In his testimony, Mr. LaHood caused a stir in the committee room by declaring that the millions of recalled Toyotas “were not safe,” echoing a public comment he made a few weeks ago that owners should not drive their recalled cars.

As he did with those earlier comments, he later amended his declaration before the committee, saying that cars recalled by any auto company needed to be repaired, and he urged their owners to visit dealerships.

The hearing also shed new light on ways in which Toyota in Japan was disconnected from its global operations.

Under questioning, Mr. Inaba, Toyota’s highest-ranking executive in the United States, acknowledged that Toyota was aware of issues with sticking pedals in Europe for a year before accidents in the United States.

That has been a crucial issue, because Toyota executives in the United States have said they found out about sticking pedal issues only last October.

The first reports of sticking pedals surfaced in Britain and Ireland in late 2008. By August 2009, Toyota began a production change on cars sold in Europe that was completed by January, weeks before it recalled millions of vehicles in the United States.

“We did not hide it,” Mr. Inaba said. “But it was not properly shared. We need to do a much better job sharing what we knew in Europe with the United States to see if there is any danger to American consumers.” Mr. Inaba said the American side of Toyota “was not aware or not informed of” the European situation until January, when he learned of it.

Mr. Inaba said the information was contained in a company database, but he indicated that it could be found only if a staff member knew where to look.

Representative Mark E. Souder, a Republican of Indiana, said he was “very concerned” about suggestions that the company addressed the problem in Europe before the United States. Mr. Inaba responded, “There is no way we can differentiate American drivers from any of the rest.”

In his testimony, Mr. Toyoda tried to reassure lawmakers that the company was addressing problems that led to the recalls. In addition, he said, the company was moving to repair its damaged reputation.

“I have personally placed the highest priority on improving quality over quantity,” Mr. Toyoda said. “And I have shared that direction with our stakeholders.”

But in one blunt exchange, Representative Elijah E. Cummings, a Democrat from Maryland, asked Mr. Toyoda, “Why should we believe that things are going to get better?”

Later, Mr. Toyoda concluded his day at a meeting with company employees and dealers at the National Press Club. His voice broke momentarily when he thanked them for their support and again expressed his apologies. Asked what he would tell President Obama, Mr. Toyoda said, “Toyota cars are safe.”

It was the second time in two days that Toyota executives testified at Congressional hearings. The latest appearances came amid questions about whether the electronic system of the vehicles, and not simply the floor mats and gas pedals, contributed to the unintended acceleration.

On Tuesday, James E. Lentz III, the president of Toyota Motor Sales U.S.A., told the House Energy and Commerce Committee that the prescribed repairs might “not totally” solve the problem. In response to a question, Mr. Lentz said that Toyota was still examining the sudden acceleration problem, including the possibility that the electronics system might be at fault.

Mr. Toyoda and Mr. Inaba both said, however, that they were confident that the computer system was not at fault.

Representative John L. Mica, a Republican of Florida, was critical of a company presentation obtained by the committee that listed “Toyota safety wins,” including $100 million in savings because the safety agency permitted the company to recall the floor mats on 55,000 Toyota Camry and Lexus ES 350 sedans, rather than the cars themselves.

The July 6 presentation bore Mr. Inaba’s name.

“It’s one of the most embarrassing documents I’ve ever seen,” Mr. Mica said.

In response, Mr. Inaba said the presentation had been made to him shortly after he rejoined the company after a two-year absence. He said he did not have an in-depth recollection of it, but added, “It is so inconsistent with the guiding principles of Toyota.”

Mr. Toyoda said the presentation did not reflect “the drifting of the entire company.”

The Toyota executives assured lawmakers that the cars involved in its recalls were safe, and agreed, under questioning from Representative Edolphus Towns, Democrat of New York, to look at extending to drivers in all states a settlement reached earlier in the day with the New York attorney general, Andrew M. Cuomo.

In that settlement, Toyota agreed that it would pick up cars and trucks at the homes of drivers, pay for out-of-pocket transportation costs and offer drivers free rental cars during repairs.

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